This is a securities class action lawsuit against Perini Corporation and certain of its officers and directors.
Perini and its subsidiaries offer general contracting, construction management, and design-build services to private clients and public agencies worldwide.
The class action lawsuit alleges that Perini issued materially false and misleading statements that misrepresented and failed to disclose:
(a) that the developer of Perini's Las Vegas, Nevada projects, including the CityCenter Project, was experiencing financial problems because it failed to secure financing for the entire project and was dependent upon raising the remainder of the financing from the expected sale of residential units. However, the proceeds from the residential unit sales were based on unrealistic and aggressive prices at a time when the condo market in Las Vegas, Nevada was extremely weak;
(b) that Perini 's Las Vegas projects were being delayed, and could possibly be halted;
(c) that the developer was in risk of defaulting on its construction loan;
(d) that Perini's future revenue and profit was dependent upon the Las Vegas projects since the projects consisted of approximately 20% of its backlog; and
(e) as a result of the foregoing, Perini's ability to maintain its profit margins was in serious doubt.
Then, on January 17, 2008, Perini issued a press release announcing that Deutsche Bank
'delivered a notice of loan default to the developer of the Cosmopolitan Resort and Casino project under construction in Las Vegas, Nevada." In response to this announcement, shares of Perini 's common stock fell $10.05 per share, or 27%, to close at $27.65 per share, on heavy trading volume.
Name (Stock Symbol)
Perini Corporation (PCR)
Perini Corporation is a large construction contractor.
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